Type: Research Essays
Sample donated: Merle Warner
Last updated: December 29, 2019
My personal experience with the stock market game was alright but there were some company that went down and it would trade for less. I know that went you make a trade, it would increase the value of the money that you make. I ended making some money with the trade that I have been doing because the trade has a large value that increases when you trade. My biggest trade I made was Bank of America and it was going up and I got a lot of cash back from it. I made the trade because it was going up . They turn out alright due to how much how much it was going in stocks. There were some of the stock that was large and there were some were going in stocks.
Some of the company went up in the stock and there were some that went down. The reports that were perceived as both negative and positive for the company. The stock for some of the company were going up but quickly went down to a drop in the quantity and how much you can sell it for. Some of the stock would quickly start to drop after a while when it was going it up. There was a stock that I was going to make a trade when it started to go down and wasn’t enough value within it. I believe that the stock trading was a way to test how the stock market would work and how much is being produced and is going up. I think that it was alright because there were weeks that I missed throughout the game.
I think that there will be time in the future where something might be involved with stocks and I might have to do some calculation of how much is being made. There are also company that can make a lot of stocks due to how much are being purchased by consumers. It is important to know if the stock is either going up or going down depending on how much is increasing. Stocks are important to society and they can be used to make money. I learned that at some point it might began to crash and that is not good for the marketing.
The money would start to decreases and the company will start to go down. The marketing is very important for things that are being made so that the company will know how much is being produced from what was consumed. Pay experiences from playing the game and doing trade helps me to understand how the marketing works and what advantages does it have. There are companies out there that can go up in stocks but at some point start to decrease because of how much is going down in price. An example would be Sony, there marketing would go up for a long time, but suddenly it just started to go down in stocks. The marketing has made some value and its started to decreases which is not good for the companies. Sony would began to lose their values that they made from consumers which would lead to the companies making less money.
The company would then have to produced more things to be made and gets shipped out to the consumers so that their marketing would began to increase again. Stocks is when warehouses keeps goods and merchandise for a business and make it for sale. Stock market is when you trade for something that you owned. Some example of a stock market would be Nasdaq composite and Dow jones industrial average.
Companies issue stock because they need money and to do that, they would raise it by selling it to parts of the company. A company can borrow loans by issuing bonds. Value is important the company because company need money to to produced things. Ipo stands for the word initial public offering. Secondary offering is when a company had already made an ipo by holding shares for sale by a company. It also included creating new shares and offering them for public sales.
People buy stocks because it’s is good for capital appreciation. They want to grow their value over time and hopes to buy the stock at a lower prices and sell it at a higher prices. This would make the consumer invest more money into what they are buying and how the stock will increase. Stocks are valued by using the method called income valuation in which includes the discounting the profits. People know how much should be paid for a company’s stock by paying a price that’s less than the long term shared value of a business.
P/E ratio is the measurement of prices that are shared with the net income earned by the firm of how much is being shared. It shows how much a company’s is sharing and how much they invest in growth. PEG ratio is a value metric for determining the trade off between a price of a stock ands how’s the how much earning is being generated per share and what is the expected growth over time.
Stock market index is how a value is measured in the stock market. It is used by investors to describe the market and to estimate the specific investments that they made. The most important stock market index in the Us is The Dow Jones Industrial Average. Indexes tend to move together due to the direction of the overall market. Stock market indexes can helpful by getting a clear understanding how indexes are made and what is the difference between them. Mutual fund is a program that is provided by shareholders that do trade and is managed.
ETF is exchange traded fund which tracks an index. The difference between Mutual fund and etf is mutual is supported by shareholders while etf keeps in check of what your index is. I think that majority of the people own stock directly because stock keeps track of how much money they make after selling something. About 38% percentage of the U.S. population own stock. The makeup of stock ownership in the U.
S. Is focus on the richest. I think that most financial assets is concentrated in the hands of the wealthy. Bonds is a long debt in which they pay an amount in a specific date. They are different from stock due to stock paying a sum of money to their owners. Investors make money from trading bonds by changing the price of the bond and where it’s interest rates will go to.
Short selling is a transaction that isn’t owned by that seller or what they borrowed. Investor make money using short selling by borrowing stock, selling stock,and buying to the stock to give back to its lender. The risks associated with short selling is margin interest is important expense while trading. Stock options are option by some company to a worker to purchased stock at a discount and fixed price. Investor make money through option by keeping their premium income nonetheless of what situation it’s in. Some risked that is associated with option is potential loss since it is limited for price paid.
The history of the first American stock market all started in 1792 when NYSE got its first traded securities. Later in 1817, the constitution that created the New York stock and exchange board was adopted and has been established by the New York brokers. The American stock exchange started in the 1800’s which was called the “curb exchange” which was to trade outside of markets.
Stocks were bought and sold on the street curb which led to the American stock exchange. Curb trading was now any trades that was outside for exchange regulations. In the 1840 during the California gold rush,curb stone broker started making the market which is used for mining areas. They started developing new and rapidly growing industry which started to grew. In the 1850, they found a market at Hanover streets and later at Beaver streets. In 1859, the company Open Board of Stock Brokers opens was founded by a curbstone brokers. In 1865 after the civil war, industrial companies like iron,steel,textiles and chemical are first sold by the curbstone brokers. In the 1890, the market was moved to Broad street next to the exchange price.
Later in 1904, a man name Emanuel S. Mendel’s begin to put to together the curb market to advertise sound and ethical dealings. In 1908, a new market which was called the New York Club Market agency was made and started doing trading practices. In 1921, The curb market moved to a new building in Greenwich street which was located in Lower Manhatten. In 1929, The New York curb market was changed to New York Exchange. In 1930, the trading floor was expanded twice its size.
The Curb Exchange was the leading international stock market,and had listed more foreign issue than the other U.S. Securities markets. In 1944, The New York Market was made with a constitution with higher brokerage and listing standards. In 1950, Radio Amex was released to record stock prices,market index movement and other information. It attracted a growing number of young entrepreneurial companies to the lists. The value grew from 12 billion in 1950 to 23 billions by 1960. In 1953 The New York Curb Exchange was renamed to the American Stock Exchange.
In 1975, The Amex released its option market. It was an investor program comprised of films,slides, seminars, printed materials, and research that explains the risks and potential rewards for the new product. From 1979-1988, the trading floor was made larger to deal with the risk trading volumes in both stocks and options. The two balconies were built over opposite ends of the trading floor. A trading level opens and with the purchased of the 22 Thames Street, the trading was then extended with the adjoining building.
It also had a larger floor so that trading would be more efficient. In 1993, The American Stock Exchange pioneers trading with the introduction for the first exchange traded fund became the largest ETF in the world. In 1998, The Amex came with the National Association of securities dealer to make “The Nasdaq Amex Market Group”.
Later in 2004, It regain its independence. In 2008, it joins the NYSE group of exchanges, which enhance its company’s position in U.S. Options, ETF, cash equities, and offering a leading venue for listing and trading closed-end funds.
It was also acquired by the Euronext and became the Amex Equities in 2009. The Amex handles about 10% of all the securities that traded in the United States. Today, most of the trading on the Amex is the small-cap stocks, exchange-traded funds and derivatives. Hijacked